Reporting PromisesAt the beginning of 2020, the Museum of History receives a documented promise to contribute$20,000 at the end of each year for the next four years. The appropriate discount rate is 3 percent,and the promise is considered fully collectible. At the end of 2020, the museum receives the firstpayment.RequiredPrepare journal entries to record the promise and the first year's contribution. If the museum's netassets are affected, indicate the appropriate category of net assets.Round your answers to the nearest whole number.DescriptionContributions receivableDiscount on contributions receivableContribution revenue - restrictedTo record the present value of the documented promise.Discount on contributions receivableContribution revenue-restrictedTo record interest earned on outstanding contributions receivable.Net assets released from use restrictions-restrictedNet assets released from use restrictions-unrestrictedTo record release of restriction.Cash<Contributions receivableTo record donor's contribution for the year.Debit20,000 x0✔0✔600 x0✔600 x0✔20,0000Credit020,000 *20,000 *583 x019,417 x020,000

Jan1, 2020 ParticularsDebitCreditPromise to Contribute a/c $20,000…

At the beginning of 2020, the Museum of History receives a documented promise to contribute $20,000 at the end of each year for the next four years. The appropriate discount rate is 3 percent, and the promise is considered fully collectible. At the end of 2020, the museum receives the first payment. Required Prepare journal entries to record the promise and the first year's contribution. If the museum's net assets are affected, indicate the appropriate category of net assets. Round your answers to the nearest whole number.

At the beginning of 2020, the Museum of History receives a documented promise to contribute $20,000 at the end of each year for the next four years. The appropriate discount rate is 3 percent, and the promise is considered fully collectible. At the end of 2020, the museum receives the first payment. Required Prepare journal entries to record the promise and the first year's contribution. If the museum's net assets are affected, indicate the appropriate category of net assets. Round your answers to the nearest whole number.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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